The state Department of Environmental Protection will employ a contractor to remove the structure from the water, department spokesman Bob Considine told NJ.com. The cost of the removal is unclear.
The Coast Guard has been warning boaters to be on the lookout for debris from the house in the water.
"It's always something that people need to be on the lookout for on their boat - especially after a storm - for debris under the waterline and on the waterline," said Chief Nick Ameen, spokesman for the Coast Guard.
No one was home when the house in Grassy Sound was swept off its pilings Saturday as a storm hit the area.
Neighbors have called the home a structurally unsound nuisance that was bound to fall into the water.
The home's owner, Stuart Tait, couldn't be reached for comment.
A GoFundMe.com page has been started to help Tait pay for the removal of debris from the water.
Information from: NJ Advance Media.